BrasilAgro returns to quarterly profit as sugarcane drags on semester results

Company posts R$2.5 million profit in 2Q26, but weak sugarcane performance keeps first-half earnings in the red; grains and cotton partly offset the impact.

Feb 5, 2026 7:34 PM

By Brazil Stock Guide – BrasilAgro (B3: AGRO3; NYSE: LND) reported a net profit of R$2.5 million in the second quarter of the 2025/26 crop year, reversing a loss posted a year earlier, while weaker sugarcane performance weighed on first-half results, leaving the company with a net loss of R$61.8 million for the six-month period. Adjusted EBITDA totaled R$71.3 million in 6M26, down 23% year on year, reflecting the reduced contribution of sugarcane to the operating mix.

Quarterly net operating revenue rose 25% from a year earlier to R$191.1 million, driven mainly by stronger sales of soybeans, corn and cotton. In the first half, revenue reached R$494.0 million, up 3% from the same period last year. Excluding sugarcane, performance was significantly stronger, with revenue rising 35% and total volumes sold increasing 38%, underscoring the growing weight of grain crops within the company’s portfolio.

Sugarcane remained the main drag on results. Volumes sold fell 28% in the semester, reflecting lower-than-expected productivity, adverse weather events — including frost and fires — and the aging of planted areas. Gross margin for sugarcane dropped to 16%, down 20 percentage points year on year. Corn and beans, by contrast, returned to positive operating margins, while lint cotton recorded a negative margin due to lower prices and the sale of lower-quality volumes.

Financial performance was pressured by a challenging macro environment marked by high interest rates and currency volatility. Net financial expenses increased 17% year on year, tracking higher average debt balances linked to the CDI benchmark. Derivatives, however, contributed positively, with gains of R$14.6 million in the semester, reversing losses recorded a year earlier as volatility eased and hedge efficiency improved.

Management highlighted disciplined commercialization of grain inventories, ongoing investments in irrigation and the renewal of sugarcane fields as key drivers for a gradual recovery in margins. With more balanced weather conditions across operating regions, the company expects better productivity and improved absorption of fixed costs in the second half of the crop year, supporting a gradual normalization of earnings.